MAYOR BLOOMBERG ANNOUNCES NOTIFICATION OF AN EXISTENCE OF AN IMPASSE BETWEEN THE CITY OF NEW YORK AND THE PATROLMEN'S BENEVOLENT ASSOCIATION

Mayor Michael R. Bloomberg and Commissioner of Labor Relations James F. Hanley today announced that the City of New York has notified the New York State Public Employment Relations Board (PERB) of an existence of an impasse in the negotiations between the City of New York and the Patrolmen's Benevolent Association (PBA).

"Police Officers in the NYPD work hard and deserve adequate pay," said Mayor Bloomberg. "That's why the City has submitted several specific proposals to the PBA during the current round of bargaining that could provide internal funding through productivity gains, as we have done with other unions. Working together this way, we could increase starting salaries by raising the hiring rate from the current $25,100 to $37,800. Unfortunately, we haven't had any progress in negotiations with the Patrolmen's Benevolent Association for a new contract, and we are forced to file this request for a declaration of impasse. The last contract, which was reached after binding arbitration, resulted in a significant reduction in the salary schedule for newly hired Police Officers which the City of New York would like to remedy through negotiations. I always believe that the best deals are reached when both sides sit down across the table, look each other in the eye, and negotiate in good faith. We would have liked to fix this through negotiations, but despite our efforts in a number of negotiating sessions with the PBA, we have simply not been able to do that."

"This provision that we are now trying to address - the reduction of new hires' salaries - reflected the PBA's approach to fund the contract settlement through a drastic reduction in the hiring rate - a position that was not the preferred method of the City of New York," said Commissioner Hanley. "That's why, more than seven weeks ago, we made an offer to the PBA to drastically increase salaries for new hires and all police officers. We have yet to hear back from them. One month after that, we increased our offer, and again have not heard back."

The City proposed a new hire salary schedule that would increase initial pay for Police Department recruits to $37,800. After six months, that salary would increase to $40,000 and after five and a half years on the job, Police Officer pay would increase to $63,309 not including overtime and other benefits. This proposed new hire salary schedule would address the dramatic reduction in starting pay for police recruits that was determined in the last round of contract negotiations.

Current New Hire Salary Schedule

Proposed New Hire Salary Schedule

Police Academy step

$25,100

Police Academy step

$37,800

Step 1 – after 6 months

$32,700

Step 1 – after 6 months

$40,000

Step 2 – after 1.5 years

$34,000

Step 2 – after 1.5 years

$41,885

Step 3 – after 2.5 years

$38,000

Step 3 – after 2.5 years

$43,770

Step 4 – after 3.5 years

$41,500

Step 4 – after 3.5 years

$45,655

Step 5 – after 4.5 years

$44,100

Step 5 – after 4.5 years

$47,540

Step 6 – after 5.5 years

$59,588

Step 6 – after 5.5 years

$63,309

The Impasse Panel's Decision reached in 2005 resulted in a final and binding award that covered the period from August 1, 2002 through July 31, 2004. The award included a 5% increase on August 1, 2002, the first day of the contract, and another 5% increase, compounded, on August 1, 2003, the first day of the 13th month of the contract, and provided for significant internal savings funded in large measure through a greatly reduced salary structure for newly hired employees.

"The members of the Police Department and all of our uniformed forces provide exemplary services under extraordinary conditions," said Mayor Bloomberg. "Our Police Officers' unwavering dedication to duty, their commitment to facing any challenges, and their resolute approach to performing their jobs in a professional manner, has helped the City of New York maintain its preeminent place among the world's largest and safest cities. Still, the City of New York simply cannot afford to fund labor settlements unless real concomitant savings are attained in other areas such as productivity. We have tried to increase the salaries for all of our Police Officers, but the negotiations have not been fruitful. Therefore, the responsible approach is to resolve this contract promptly through PERB."